Entertainment

How Starbucks Plans to Capitalize on Free Wi-Fi

Starbucks stores nationwide now have free Wi-Fi, but details around the second piece to the coffee retailer's digital strategy — the Starbucks Digital Network — have been slim. Here's how Starbucks plans to cater to digital consumers and premium content providers through its Digital Network.

The Starbucks Digital Network (SDN) will be available to customers at company-operated stores beginning this fall. With SDN, Starbucks hopes to engineer an in-store, third-place experience like no other by offering exclusive and premium content from hand-picked content providers, including Apple, The New York Times and leading health publisher Rodale.

In an interview with Mashable, Starbucks's Vice President of Digital Ventures Adam Brotman revealed intimate details around the vision behind SDN and the various entities participating in the network.

The Bigger Picture

For Starbucks, the in-store experience is paramount.

The company already knows that computer users spend about one hour per visit on Wi-Fi while mobile users stick around for 15 minutes per web session. Plus, Starbucks has a history of curating music and pop culture content with in-store selections. SDN is the realization that nationwide free Wi-Fi offers Starbucks more access to its customers; it is a marriage of digital convenience and curatorial prowess.

"We know that people would pay us for this opportunity. But instead of asking them to pay us, we thought, 'Let's aggregate and compile the best content that [Starbucks customers] can't get any where else,'" Brotman says.

In fact, when it comes to SDN, there's no money changing hands between Starbucks and the content providers. Content providers are giving away restricted access in the hopes of attracting new business, and Starbucks wins by having something completely unique and customers benefit from by getting something of value at no cost. Brotman says, "It's a win-win for everyone."

Starbucks does plan to upsell SDN users, and there will be a revenue share between the coffee retailer and its content providers should customers go on to purchase while browsing.

The Network

Brotman describes SDN as a localized five channel network with curated content from the best sources in the following categories: News, Entertainment, Wellness, Business & Careers and My Neighborhood.

In the News channel, customers will have unfettered access to the Wall Street Journal, USA Today and The New York Times. Brotman explained that access to the latter of the two will be the paid versions not available for free to readers anywhere else.

When it comes to entertainment, Starbucks will offer free Apple iTunes downloads. Brotman promises even "more exciting Apple stuff" in the future, noting that the two brands have a strong relationship. Nickelodeon is offering free access to Nick Jr. Boost via SDN. The offering should appeal to parents trying to entertain their kids by giving unrestricted access to educational games that aren't usually free.

Starbucks has selected Rodale — publisher of health and wellness magazines such as Runner's World and Women's Health — for its Wellness channel. The premium content offered will be tailored to Starbucks customers and will include recipes, videos and articles, all of which will be updated regularly. Rodale will also let users create their own maps, running routes and biking routes with Starbucks stores identified as pit stops.

The Business & Career channel will feature content from Yahoo, a network-wide partner, as well other to-be-announced partners.

Just as it sounds, My Neighborhood will be populated with local information and will even include access to compete Zagat ratings for local eateries. This section will allow users to locate and learn more about the nearest schools using DonorsChoose.org for classroom funding.

"This is just the beginning of how we plan to leverage this channel," says Brotman. He imagines a future filled with more Apple goodies, exclusive e-book downloads and eventually the opportunity to digitally connect patrons to other patrons through games or other social activities.[img credits: Gubatron, Scotts Picts]

Mashable
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